3rd AFC Monthly Report | Part of September, October and beginning of November 2025

Governance Astar Finance Committee
1

GM Astar community! :glowing_star:

It’s time to release the third Astar Finance Committee (AFC) Report, which covers the activities carried out by the AFC during part of September, October and beginning of November 2025.

As for the second report, also this report presents the new, simpler, and shorter format, avoiding the need to list the long series of on-chain activities carried out by AFC during the aforementioned period. The focus is instead placed on the most relevant sections of the report: Asset Allocation, Earned Amounts, Burned, Buy-Back & Burned and Coretime Reserve Amounts and Weekly Meetings Minutes. It is also important to highlight that all on-chain activities performed by AFC can be independently verified by anyone in a fully autonomous and permissionless manner, through the specific block explorers available for each network on which AFC operates (all details can be found in the final section of this report). Please note that the report format may undergo further changes and optimizations in the future, with the goal of providing the community with the best possible tool to monitor AFC’s activities. At the same time, it is intended not to be a mere formality, but a resource that can actively support AFC members in carrying out their work and help them make responsible and informed decisions.

Since its formation, the AFC has been actively working on the management of DAO allocation assets and the implementation of strategies aimed at fostering value creation, diversifying reserves, and deploying liquidity responsibly across ecosystems.

Asset Allocation

As of 5th November 2025, the assets managed by the AFC are allocated as follows (addresses with negligible balances are excluded from the report).

AFC Pure Proxy on Astar Network [SS58 (Substrate)]

Subscan (click for more details)

AFC Multisig 3/5 threshold [SS58 (Substrate)] on Hydration

Hydration App (click for more details)

Hydration-Screenshot-05.11.2025-1000x
Hydration-Screenshot-05.11.2025-1000x1920×10168 1.44 MB

AFC Multisig 3/5 threshold [EVM] on Soneium

DeBank Dashboard (click for more details)

DeBank-Screenshot-05.11.2025-1688x
DeBank-Screenshot-05.11.2025-1688x1920×1903 179 KB

Earned Amounts

Since 19th September 2025 up to 5th November 2025, the amounts earned (mainly from dApp staking, liquidity provision and farming) are as follows:

  • dApp Staking: 7,504,780.0583 ASTR —> as decided by AFC members, the burning of ASTR tokens is paused until more details will be available regarding Astar Burndrop mechanism. The idea behind this decision is to create a double-burn effect: instead of simply burning ASTR tokens, we can use the same amount of tokens to participate in Burndrop and use the received tokens to buy and burn ASTR again, that would effectively create a double(or even more, in case of multiple Burndrop events)-burn effect. Due to this decision, there will NOT be any burning of ASTR tokens this month.
  • Hydration LP:
  • Velodrome LP:
  • Additional rewards, not directly quantifiable until the moment of redemption or swap of the liquid staking token, are represented by holding the tokens of liquid staking protocols: Bifrost (vASTR, vDOT) and Astake (wstASTR). These tokens appreciate over time relative to their underlying assets, as they continuously accumulate staking rewards.

Burned, Buy-Back & Burned and Coretime Reserve Amounts

Burned Amounts

TOTAL ASTR burned by AFC since the start of its operations: 5,588,072 ASTR

Buy-Back & Burned Amounts

TBD

Coretime Reserve Amounts

  • 5 DOT as test transaction to Astar sovereign account on the Coretime System Chain
  • 295 DOT to Astar sovereign account on the Coretime System Chain for auto-renewal system (renewal failed due to UI/UX issues)
  • 650 DOT (648 DOT + 2 DOT) to Startale Core Developer wallet on Polkadot to buy the new Coretime (it was manually purchased due to auto-renewal system fail)

TOTAL Coretime reserve amounts provided by AFC since the start of its operations: 950 DOT

Weekly Meetings Minutes

This section contains the minutes of the weekly meetings, summarizing the main topics discussed, decisions taken, and tasks assigned.

24th September 2025

  • Performed on-chain operations in sync
  • AFC members discussed how to allocate USDC amount on Soneium
    • Mingshi Song suggested to deploy liquidity on Sake Finance, as Aave has too low yield on Soneium, or leveraging on SuperReturn
    • Maarten Henskens suggested SuperReturn without leverage in order to avoid complexities
    • AFC members discussed other possibilities such as buying ETH or BTC
      • Mingshi Song will create a proposal vote for next investment: wBTC or ETH
  • Luca Poggi proposed to explore buyback and burn strategy using GDOT and USDC
    • Maarten Henskens highlighted buyback complexity by emphasizing transparent community communication and need to establish buyback strategy threshold
    • Xin Xing Phua will investigate market makers onboarding process
    • AFC members will schedule dedicated discussion next week and it was advised to wait before acting on small amount to avoid unnecessary steps
  • Marcelo Alvarenga will create a proposal vote for supporting Subscan in dApp Staking, due to its recent listing

1st October 2025

  • Performed on-chain operations in sync
  • Guenael Wagner asked AFC members for feedback regarding Mimir multisig wallet, so he can report any requests to the team
  • Guenael Wagner informed AFC members that some DOT token for next Coretime slot auction will be needed in a few months or beginning of next year
  • Guenael Wagner took on the task of informing Subscan team regarding AFC dApp Staking actions

8th October 2025

  • Performed on-chain operations in sync
  • Mingshi Song proposed to increase liquidity for ASTR and vASTR on Hydration due to increased supply cap
    • AFC members will discuss about this strategy in async
    • Luca Poggi will create a proposal vote for this strategy

15th October 2025

  • Performed on-chain operations in sync
  • Guenael Wagner took on the task of drafting forum post about Coretime expenses
  • AFC members discussed about the Hydration XCM rate limiter and Hydration pools limits

22th October 2025

  • Performed on-chain operations in sync
  • Luca Poggi proposed initiating a buyback and later burn program for Astar, starting with strategic purchases during market downturns to support the token’s price: he suggested using accumulated stablecoins to buy ASTR when its price drops by around 10%, aiming to stabilize the market, strengthen community confidence, and optimizing the amount of ASTR accumulated in preparation for future burns
    • Xin Xing Phua suggested purchasing $20-30K tokens for meaningful market impact
      • Legal team confirmed token purchases acceptable if not manipulating market
      • Market makers indicate price impact likely occurs above 5% trading volume
    • Maarten Henskens clarified market making strategies handled exclusively by Astar Foundation
    • AFC members considered setting low-price buy orders to resist market drops
      • Mingshi Song confirmed Binance corporate account registration process is straightforward
    • Marcelo Alvarenga suggested postponing buyback program until more stablecoins are accumulated
      • Maarten Henskens took on the task of creating a poll to initiate buyback program at specific stablecoin threshold
  • Guenael Wagner announced that Coretime lease slot was successfully acquired and assigned to Astar Network without referendum
    • Plan to enable auto-renewal of Coretime lease slot via governance referenda in early November 2025

29th October 2025

  • Performed on-chain operations in sync
  • Luca Poggi took on the task of preparing the 3rd AFC Monthly Report
  • AFC members decided to reopen discussion about Buy-Back & Burn for ASTR when reaching 150k USD threshold in stablecoins
  • AFC members decided to pause the ASTR Burn in order to evaluate the double-burn effect strategy (see above for details)

5th November 2025

  • Performed on-chain operations in sync
  • Luca Poggi took on the task of finalizing the 3rd AFC Monthly Report
  • AFC members decided to move 20M ASTR from Community Treasury dApp to Subscan dApp
  • Mingshi Song proposed to sell VELO tokens around upcoming Velodrome announcement next week

On-Chain Transparency

All on-chain activities performed by AFC can be verified by any member of the Astar community using the blockchain explorers relevant to the networks where the activities took place. Below, you will find the list of AFC’s addresses across the networks in which it has operated, along with the individual addresses of AFC members.

Wallet Name Public Key Astar Network [SS58 (Substrate)] (*) Astar Network [EVM] (*) Soneium (*) Hydration (*) Bifrost Polkadot (*)
AFC Pure Proxy 0x922ee694ea772dc63a575845fa57a0c5ea93dfdc2a93ec631d9e426962f1e311 ZEyDXf6563rc78ibEtYQAkHTSKLzMES1m2BrPNdLcma57Tg N.A. N.A. N.A. N.A.
AFC Multisig 3/5 threshold [SS58 (Substrate)] 0xb622b8b173b6016c7fcf66a9f392e2518313b09afb2a809fa1a69f9b6154f3a6 a47KfkpbXdvKP5jG1tk21kSgtyUCR81aLNokY9JaqFmE59F N.A. N.A. 157p2i3og5GHY64QjMVd8WRKTUFzvVyQddc9g7voGZHKpWNQ 157p2i3og5GHY64QjMVd8WRKTUFzvVyQddc9g7voGZHKpWNQ
AFC Multisig 3/5 threshold [EVM] 0xDEa0061c12756F276a7df2Faa3865de187AB1e5C N.A. 0xDEa0061c12756F276a7df2Faa3865de187AB1e5C 0xDEa0061c12756F276a7df2Faa3865de187AB1e5C N.A. N.A.
Maarten Henskens - AFC [SS58] 0xddbd373af7b1f2892a6ddb8e54095d32f6fc8c47852123e7d3220f5c05ddc833 ax35rmE4tKPzfn89aATn6iKxd8krQ73D5CDvmXmXPg8YBg2 N.A. N.A. 161jnu4D9RwmDNkocumLtbPCjCRHaUxSGNRZrMKGD7hh8pxt 161jnu4D9RwmDNkocumLtbPCjCRHaUxSGNRZrMKGD7hh8pxt
Maarten Henskens - AFC [EVM] 0xE04Ef470062B44A3256DfAC0a0484EEEBd23a6cE N.A. 0xE04Ef470062B44A3256DfAC0a0484EEEBd23a6cE 0xE04Ef470062B44A3256DfAC0a0484EEEBd23a6cE N.A. N.A.
Xin Xing Phua - AFC [SS58] 0x5801736120a0137e293b79762baf4bfca77071606c10e0477447b1a1f35ec3d1 XvgwMpewQg1P9brEihL8WW6nWphJ5WSMYjykhCCozic8kcN N.A. N.A. 12zPeQ7e1xJNbraXi4JDF1AyZ67E2AMqQqyKgGyhVikAjC9i 12zPeQ7e1xJNbraXi4JDF1AyZ67E2AMqQqyKgGyhVikAjC9i
Xin Xing Phua - AFC [EVM] 0x8FEd4fCAa019DC766A114eebEE6f3eB492ABbd7b N.A. 0x8FEd4fCAa019DC766A114eebEE6f3eB492ABbd7b 0x8FEd4fCAa019DC766A114eebEE6f3eB492ABbd7b N.A. N.A.
Mingshi Song - AFC [SS58] 0x6e77dc1016c3def627bd400d909e4489b8c033859bca60eee0748aa3da5e23e4 YS9AbgtyKa3LzaC2QnuNcskxKJoe885UAoVBZRQhoruHJMR N.A. N.A. 13Vqsdyt3sCQZhYsVkPnV7YditbLNCyUXU2q79CuPXtTscDN 13Vqsdyt3sCQZhYsVkPnV7YditbLNCyUXU2q79CuPXtTscDN
Mingshi Song - AFC [EVM] 0x13FCeA4B291007aCa3Cbb9aABC5D86E71F3d1F39 N.A. 0x13FCeA4B291007aCa3Cbb9aABC5D86E71F3d1F39 0x13FCeA4B291007aCa3Cbb9aABC5D86E71F3d1F39 N.A. N.A.
Marcelo Alvarenga - AFC [SS58] 0x26aa2928aeb7f06f2f31c60b95f32ed50e929ab2beef099a08bc9e174c87ab34 WozfJRBDbCzRP7WusYMof1gXg528ArKtxbKxzfDjbE4qG5U N.A. N.A. 1shNLiAJ8qMe66CPD9Ev9gZJFMYrFhixFpftaSiRKFdRYHC 1shNLiAJ8qMe66CPD9Ev9gZJFMYrFhixFpftaSiRKFdRYHC
Marcelo Alvarenga - AFC [EVM] 0xECF25f90CaA80D3EFBED1932aCfDC5CC71437CC3 N.A. 0xECF25f90CaA80D3EFBED1932aCfDC5CC71437CC3 0xECF25f90CaA80D3EFBED1932aCfDC5CC71437CC3 N.A. N.A.
Luca Poggi - AFC [SS58] 0xacf7cc49ceacddbbd81366ea0741caa3028f3325e8d84e9a80d47befa6bc0849 Zr697sT4oRht4rBdsK3wLDUXXYnJeGVLzMYxnrTDuy1x1tJ N.A. N.A. 14unrAAS9M456mps7Cuw3ptMJ6qK2j7tQHattNdwudzaYDkc 14unrAAS9M456mps7Cuw3ptMJ6qK2j7tQHattNdwudzaYDkc
Luca Poggi - AFC [EVM] 0x792Fb25c66eFcE66102eaE76A60d6ae05b568Ef2 N.A. 0x792Fb25c66eFcE66102eaE76A60d6ae05b568Ef2 0x792Fb25c66eFcE66102eaE76A60d6ae05b568Ef2 N.A. N.A.

(*) Click on the address to open the corresponding block explorer

The Astar Finance Committee (AFC) is a dedicated governance body with the responsibility to manage the Astar Treasury assets assigned to it for generating sustainable revenue streams, accelerating ecosystem growth, and ensuring long-term value returns to the Astar ecosystem.

We encourage all Astar community members to review this monthly report. If you have questions, suggestions or want to get involved in any upcoming discussions, open a topic on the Astar Forum, tag us or drop a message in this discussion.

AFC members:

AFC observers:

—

Astar Finance Committee

November 2025

12 Likes
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Thanks for the report Luca, as always the best and I totally agree with the idea of suspending the $ASTR burn to wait for the Burndrop event, good job to everyone guys :clap:t2::glowing_star:

2 Likes
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Thank you to the Astar Finance Committee (AFC) for the transparency and detailed insights provided in this 3rd report. The community appreciates the clarity and effort in keeping everyone informed about treasury management, staking performance, and the long-term sustainability of the ecosystem.

What’s the average yield (APR/APY) achieved from staking and farming activities so far?

How is the diversification rationale determined — e.g., between ASTR, DOT, stablecoins, or other assets?

Is there a minimum stablecoin accumulation target before initiating the first buyback?

2 Likes
4

Good work, very detailed and transparent.

What criteria do you use when diversifying the treasury across different assets? In other words, following Pitcoin’s question, do you choose the most stable or aggressive pools by APR/APY, understanding that those offering higher APR/APY may be riskier? Thank you.

2 Likes
5

Hi everyone, to answer this:

We currently have 2 standard strategies defined via internal voting:

  1. We sell 25% of our GDOT holdings every week into USDC then deploy the proceedings into the USDC lending pool
  2. We sell all VELO rewards into WBTC when the accrued amount is reasonable enough

We may apply other strategies or deviate from the standard strategy at our discretion, but as of now this is what we have agreed to do on a recurring basis. The reasoning behind accumulating USDC is to achieve treasury stability during market volatility and to have capital at-ready to deploy in case there are good market opportunities. The reasoning behind accumulating WBTC is to capture a share of crypto market appreciation while reducing risk on the downside compared to other crypto assets.

I hope this helps a bit!

6 Likes
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That sounds great, it’s completely clear to me now. Thank you for the information; this way we can learn more about how treasury is managed.

Great work. Keep it up, and good luck.

2 Likes
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Thanks for the detailed update, the streamlined format really helps highlight the core financial and strategic decisions. The pause on burns to explore a potential double-burn effect through Burndrop is an interesting approach, and the structured thinking around buyback thresholds is great to see.

One question for future planning: has the AFC considered modeling different buyback scenarios (e.g., at various stablecoin reserves or volatility levels) to quantify expected impact and help optimize timing? Could be useful for setting clearer parameters as the treasury grows.

1 Like
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Thank you @pitcoin777 for your questions

  • For staking the APR is provided by Astar dApp Staking + bonus (you can take a look at Astar Portal)
  • For farming we are achieving about (APR): 15.3% for GDOT, 15.8% for DOT, 12.4% for HUSDC, 12% for ASTR and 5.80% for vASTR

This was already answered by @marcelo (thank you! :wink:)

Yes, as you can read in the report: 150k USD equivalent in stablecoins

1 Like
9

Thank you for your feedback, @Matt !

We are discussing about this topic. One scenario we are analyzing is using the available liquidity during periods of negative market performance. As you can see in the report, there are various considerations on this topic.

1 Like
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After reviewing the latest AFC report, I appreciate the transparency, operational discipline, and maturing structure of Astar’s treasury management. The committee demonstrates strong execution, consistent reporting, and an increasing focus on strategic topics such as asset allocation, buyback logic, and dApp staking optimization.

However, while the AFC is clearly progressing, I also see several structural gaps that should be addressed if Astar intends to match the sophistication of treasuries managed by leading ecosystems like Optimism, Arbitrum, and Solana. Below is my technical assessment along with the proposals I believe could significantly strengthen the AFC in 2025–2026.

Treasury Overexposure to ASTR

The most evident issue in the report is the extremely high concentration of assets in ASTR. While dApp staking yields are attractive, having more than 90% of the treasury tied to the native token introduces substantial systemic risk.

This level of exposure reduces operational flexibility and makes the DAO vulnerable during market drawdowns.

I propose to adopt a structured, three-pillar allocation model:

  1. 30% Stable ReserveUSDC, USDTThis stabilizes the DAO and gives it an operational buffer.
  2. 40% Growth AssetsBTC, ETH, liquid staking ETHThese assets provide long-term resilience and decorrelation.
  3. 30% Astar Ecosystem ExposuredApp staking, Hydration LP, Burndrop allocations.This maintains alignment with Astar’s native economy without overexposing the treasury.

Implementing this “Tri-Pillar Treasury Model” would protect the DAO from market volatility while still supporting Astar’s long-term vision.

Double-Burn Strategy: Strong Concept, Needs Clear Structure

Pausing direct ASTR burns to leverage the Burndrop mechanism is a smart decision. Using ASTR to participate in the Burndrop, receive new tokens, sell them, and then buy or burn ASTR again creates a powerful compounding burn effect.

However, as it stands, the strategy lacks formalized rules and timing.

My proposal:
Allocate 30% of dApp staking rewards into a dedicated Burndrop pool, with buybacks executed in three predetermined epochs after Burndrop distributions.

We receive new tokens → we sell them → we cash in USDC → We buy ASTR and burn it.

But we do this at 3 scheduled times, to optimize the price and the impact on the supply.

Epoch 1: immediately after the token distribution (to capture the liquidity spike)

Epoch 2: a few days later (to average the price)

Epoch 3: weeks later (to avoid pumps and dumps)

This approach introduces predictability for the community and ensures that the double-burn mechanism is executed with maximum efficiency and transparency.

Astar Needs Better KPI Tracking

The AFC reports its operational actions, but the treasury currently lacks quantitative indicators that allow the community to measure long-term financial health.

To modernize governance, I propose introducing four essential KPIs:

  1. Treasury Health Ratio
    (decorrelated assets ÷ ASTR exposure)

  2. Operational Runway
    (weeks of operation funded solely by stable reserves)

  3. Capital Efficiency Index
    (annualized yield ÷ total treasury value)

  4. Buyback Coverage Ratio
    (sell pressure absorption capacity)

These KPIs would help the community understand the treasury’s resilience and guide future decision-making.

Conclusion

The AFC is clearly evolving in the right direction, with solid execution and transparent communication. However, to strengthen ASTR’s economic foundation and ensure long-term sustainability, I believe the DAO should adopt:

  1. a diversified and structured treasury allocation model,
  2. a formalized double-burn strategy,
  3. and measurable KPIs for transparency and accountability.

These steps would elevate Astar into one of the most forward-thinking and financially sophisticated ecosystems in Web3.

2 Likes
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Thanks a lot for your valid feedback @Manu0x51

Thanks for the detailed analysis and for taking the time to review the report. While it does take time, we believe that the AFC is becoming a real strength of the ecosystem.

At the same time, I agree that this is the right moment to level up. Astar is entering a next phase where treasury sophistication can become a competitive advantage in the collective, and there are a few points you raised where we can realistically push the committee further.

1. Treasury Exposure

The concentration in ASTR is something we all recognize.
A full 30/40/30 split overnight isn’t feasible or healthy, but a phased diversification approach is realistic. Using organic inflows like dApp staking rewards, LP incentives, and future Burndrop proceeds the AFC could gradually build a more balanced base without creating market pressure but it also takes time because the AFC only started with 100% ASTR only. This has been our mission since day 1.

2. Burndrop / Double-Burn

The double-burn mechanism is powerful, especially in combination with Burndrop, but structure will matter based on the burndrop mechanism and rules attached to this. Currently this is still unknown. When more information is available, AFC will share its plans on how to take advantage of this opportunity. An idea as you mentioned is to create a burndrop pool coming from dApp Staking rewards earned by AFC.

Closing

Overall, the AFC is moving in the right direction, and you’re right that we now have the opportunity to bring the structure closer to the level seen in top ecosystems. We do have some idea’s cooking. Again, thanks for your comments.

3 Likes
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Thank you for reading and replying to my comment.

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Thank you Luca for this great report! As a long-term Astar holder, I’m very excited and pleased with this AFC report. The asset allocation is clear, the yield structure is solid, and the decision to pause burning in favor of a potential “double-burn effect” through Burndrop shows smart long-term thinking. The multi-chain deployment and transparent governance process also highlight Astar’s steady move toward a more mature and sustainable ecosystem, cheers!

14

Thanks for sharing the 3rd report, particularly interested in the double-burn effect part!

15

Thank you, Luca, for this detailed and comprehensive AFC report.
As always, the clarity of your updates makes it much easier for the whole community to accurately follow the evolution of the treasury and the ongoing activities.

I really appreciate the transparency and the effort you consistently put into these reports.
Great work! :folded_hands:t3: